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Test of control and substantive procedures


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#1 Manali

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Posted 17 July 2013 - 02:50 AM

Can some one please explain me when to use test of control and substantive procudeures?

 

I think, we use test of control when there is strong internal control and substantive procedure when internal conrol is weak??



#2 gurmatkhoj

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Posted 19 July 2013 - 03:21 AM

hello.

 

You only test controls when you want to rely on them.  If you can rely on them then you want reduce the amount of Substantive procedures and thus reducing analytical procedures.  So, strong internal control will help reduce materialty and less testing for the auditor.  I hope this helps.



#3 Manali

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Posted 19 July 2013 - 03:12 PM

Thanks



#4 smalltimeauditor

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Posted 23 July 2013 - 10:38 PM

Another way to think about it, if you want to put more reliance on internal controls (and do less work), then test of controls must reveal that they have strong internal controls. If you know internal controls are weak, you're going to do have to do more work - and may not need to test internal controls.


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#5 Manali

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Posted 06 September 2013 - 10:14 PM

Thanks



#6 lusine23

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Posted 01 October 2013 - 09:00 PM

My professor once gave us a hint, substantive testing relates to numbers. So if you are testing anything with numbers, it will be substantive testing. 



#7 woogiboogi

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Posted 20 January 2014 - 01:17 PM

just a reminder....analytical procedures are used in the beginning, during, and end of audit and analytical procedures used during audit is part of substantive test.